Myanmar Department of Civil Aviation supports public-private agreements to develop airports.
11 Nov

Myanmar Department of Civil Aviation supports public-private agreements to develop airports.

The Department of Civil Aviation Myanmar (DCA), the government agency operating under The Ministry of Transport, is planning to obtain approval for public-private invested upgrades for airports across Myanmar. This will be for operations management, renovation and development of the facilities. This is important news as :-

1) Redevelopment of airports’ operations demands a huge range of skills and technologies.
2) Projects would be under public-private partnership agreements, (PPP).
3) The Myanmar Government is now encouraging PPP agreements.

In the past, when compared to other ASEAN countries, Myanmar was seen as being rather restrictive in terms of PPP policies. There had been some developments under the National Comprehensive Development Plan. But there were no definable PPP laws or a government agency. No guidelines existed for PPP projects that could cover ports and airports, toll roads, inter-city and urban rail transport, water resources, telecommunications and communications. This has now changed. There are now clear government policies and guidelines for PPP agreements. The projects are usually long term and high value.

You may have seen our previous blogs reporting on growth in the Myanmar construction sector, following the on-going reforms in Myanmar. Now airports across Myanmar are in the spotlight with opportunities for funding by private capital sources. Myanmar has 25 operating airports with commercial flights. Following development it is envisaged that some regional airports will also be upgraded to receive international flights.

In the years prior to Myanmar’s independence the task to provide civil aviation for Myanmar was granted to the British Overseas Airways Corporation (BOAC). Then, following independence on 4 January 1948, changes started allowing for the development of Myanmar’s own civil aviation services. The authorisation of PPP agreements for all the airports across Myanmar will provide enormous opportunities.

One example of a PPP agreement in operation is the new Hanthawaddy International Airport, which will be operational by Autumn 2019. The total project will be completed in 2022 making Hanthawaddy International the premier gateway for entry into Myanmar. The consortium won the tender in October 2014. This privately operated airport is designed for a handling capacity of initially 12 million passengers, growing to 30 million and has a budget of US $ 1.5 billion.

FocusCore opened in 2014 and is working in this rapidly growing economy. We help companies become established here. The potential budgets in PPP agreement are very substantial*. We are here so you can focus on your business and rapidly open your company in Myanmar.

*Reports indicate that infrastructure spend required to support Myanmar forecast growth of 8% per year up to 2030 is estimated to be US $ 320 billion, including 60% of the investment required for residential and commercial real estate; Power generation US $ 66.6 billion; Transport infrastructure US $ 40 billion.

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